Executives at Britain’s biggest companies have sold more than £1billion of shares ahead of an anticipated capital gains tax raid by Chancellor Rachel Reeves.
Shareholders at FTSE-listed companies have been racing to sell down stock in recent weeks, according to The Telegraph, amid growing fears the Government could double the rate of tax paid when investments are sold.
Senior leaders including chief executives and board members have sold £1.3billion worth of stock and acquired £297million between May 27, days after the election was called, and Friday Sep 27 — leading to net sales of £1billion, according to Telegraph analysis of figures from stockbroker AJ Bell.
Examples of high-profile transactions include Next chief executive Lord Wolfson last month selling a £29million stake in the high street giant, while Dunelm deputy chairman Sir Will Adderley offloaded shares worth £114million in a bid to achieve “greater portfolio diversification”.
Other examples include a £1million share sale by Balfour Beatty finance chief Philip Harrison and Funding Circle founder Samir Desai’s move to sell a £5million stake in his business.
It comes amid mounting speculation that the Chancellor could launch a capital gains tax raid when she delivers her maiden Budget on Oct 30. Capital gains is paid when shares are sold and is currently levied at a rate of 20% on any profit.
However, think tanks have urged Ms Reeves to equalise the levy with income tax, which for higher rate payers stand at 45pc.
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